Here’s Why Boston Beer Co (SAM) Traded Down in Q1

Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 1.50% in the first quarter, compared to the Russell 3000’s -4.72% return and the Russell 2000’s -9.48% decline. The portfolio performed well in a difficult quarter for small-cap stocks. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Longleaf Partners Small-Cap Fund highlighted stocks such as The Boston Beer Company, Inc. (NYSE:SAM). The Boston Beer Company, Inc. (NYSE:SAM) is a beverage company that engages in the production and distribution of alcoholic beverages. The one-month return of The Boston Beer Company, Inc. (NYSE:SAM) was -18.62%, and its shares lost 38.68% of their value over the last 52 weeks. On June 26, 2025, The Boston Beer Company, Inc. (NYSE:SAM) stock closed at $187.06 per share, with a market capitalization of $2.085 billion.

Longleaf Partners Small-Cap Fund stated the following regarding The Boston Beer Company, Inc. (NYSE:SAM) in its Q1 2025 investor letter:

“The Boston Beer Company, Inc. (NYSE:SAM) – US beverage company Boston Beer detracted in the quarter. The stock price has been under pressure due to macro concerns around declining alcohol consumption trends, combined with concerns on the Truly brand’s continued declines and overall company margins. Both we and the company believe these headwinds can be overcome, and the company has multiple drivers to grow in the next twelve months. Management is taking action to increase value per share in the meantime by being one of our larger share repurchasers in the portfolio currently. Expectations for growth have been reset to a flattish level, and from this lower base, we remain optimistic in the long-term opportunity.”

Is Boston Beer Company, Inc. (SAM) the Best Alcohol Stock to Buy According to Billionaires?

A closeup shot of a beer tap pouring a golden lager.

The Boston Beer Company, Inc. (NYSE:SAM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held The Boston Beer Company, Inc. (NYSE:SAM) at the end of the first quarter, which was 29 in the previous quarter. While we acknowledge the potential of The Boston Beer Company, Inc. (NYSE:SAM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered The Boston Beer Company, Inc. (NYSE:SAM) and shared the list of best alcohol stocks to buy according to billionaires. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of NYSE:SAM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.